Your collision/comprehensive coverage you will undoubtedly have on this car should cover the same things at no additional cost, and you will have an easier time getting damages covered by them than by this specialty insurance. It sounds like a new type of profit center BMW is offering to go with offerings like paint protection, Scotch-Gard, and non-BMW extended warranties.
There is probably enough fine print in the coverage to ensure they never have to replace a wheel or tire because certain things aren’t covered or could have been avoided somehow, like many extended warranties. For example, if you rub the edge of the rim on a curb and tear up the finish, they probably will not do anything for you because it is still round and will hold air. In other words, you will probably have to completely destroy a rim or tire in order for it to be covered by this plan, and it will already be covered by your collision insurance. I know someone who bought a supposedly very comprehensive extended warranty for their car. Their sunroof developed a leak, which destroyed the trip computer in the overhead console. After much bickering, they fixed the sunroof but refused to fix the trip computer because it didn’t go bad on it’s own; it was water damaged. I also found a loose inner tie rod end, something that is covered by the extended warranty. They took the car in and was told that, for the warranty to replace the tie rod end, it must completely break. They will not cover it because it has excessive play. I guess they are hoping it will break and total the vehicle in the resulting accident so they don’t have to pay anything out, and if they’re really lucky, it will kill the occupants so they don’t have to hear about it from the person who bought the warranty.
I wouldn’t suggest buying something like this. If you are concerned about your wheels, make sure they are covered in your car insurance policy and bank the money for repairs/maintenance, or even put it towards lowering your collision/comprehensive deductible for the next five years. It will probably be cheaper that way and get you better coverage. The purpose of this plan is not to protect you in any way, but to make money for the dealership.